.The Russell 2000 might possess a profits problem.Though the small-cap index acquired 10.1% in July, it's fallen around 4% so far in August, as of Thursday morning.ALPS' Paul Baiocchi achieves the unstable moves to the index's general arrangement, along with an estimation coming from Beauty Global presenting 40% of those providers possess damaging profits." [Investors] have primarily surrendered themselves to the fact that by being in the Russell 2000, I am actually merely going to have to take the excellent along with the poor," the firm's principal ETF schemer informed CNBC's "ETF Edge" this week.To stay away from the earnings pain, Baiocchi recommends capitalists focus on premium providers, looking at even more discerning exchange-traded funds like his firm's mountain range O'Shares U.S. Small-Cap Premium Reward ETF Reveals (OUSM)." The suggestion is actually top quality providers that pay as well as expand their dividends, and also notably, have less volatility than their peers," he pointed out. "It allows consultants and financiers that have seen small caps go sideways for 5 years to become alloted to a category that is actually delayed." Aside from its own profits display, the fund consists of just 107 stocks u00e2 $" a portion of what's inside the Russell 2000. Its own best 3 holdings are actually Tradeweb Markets, Juniper Networks and also Old Commonwealth International, each sitting at a roughly 2% weighting in the fund, per FactSet.Shares of the small-cap fund are down 1.5% month to day u00e2 $" surpassing the Russell by greater than 2 portion points in that time.Disclaimer.